SMR U-Turns ... What's Next?
On April 9th, I posted analysis in the MPTrader discussion room about SMR (NuScale Power Corp), a former high-flying modular nuclear power producer that had been in the grasp of a relentless six-month, 84% bear phase.
I presented three chart views -- 4-hour, daily and monthly -- concluding: "From a technical perspective, SMR has a plethora of anecdotal evidence indicating a major U-Turn is nearing quickly. Unless and until it climbs and closes above 11.20/35, however, I cannot rule out lower-lows that project next into the 8.50 target level."
Trading at 9.59 at the time, SMR got down to a 19-month low at 8.85 before pivoting in a powerful rally that hit a high of 13.24 on Thursday April 16th, closing on Friday at 12.78.
Although SMR benefited from both an acute oversold condition and the broad, sympathetic, powerful advance in the equity market indices, my pattern and momentum setup work indicates that last week's strength is the initiation of an accumulation bottoming process ahead of an intermediate-term rally period. This period will likely will be underpinned by a return of capital flows into the modular nuclear energy names amid a prolonged period of elevated oil prices that threaten to hamper exponentially increasing energy demand necessary to drive U.S. economic growth into 2030.